Ankara: The average interest rate on a 30-year mortgage in the US rose to 6.97% last week, marking its highest level since May 2025, according to data released Wednesday. This increase in mortgage rates has coincided with a decline in mortgage applications, which fell by 4.1% in the week ending September 11 compared to the previous week.

According to Anadolu Agency, applications to purchase homes saw a reduction of 1%, while refinancing applications experienced a sharper drop of 9% during the same period. The average rate on a 30-year mortgage increased from 6.85% the previous week, while the 15-year mortgage rate also climbed from 6.17% to 6.30%.

Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, attributed the rise in mortgage rates to several factors. He noted that increasing energy prices, persistently high inflation, and ongoing market concerns about the future direction of monetary policy have contributed to the upward pressure on Treasury yields and mortgage rates. Kan highlighted that with the yield on the benchmark 10-year US Treasury note nearing 5%, the average 30-year mortgage rate has reached its highest level since May 2025.